2% rule -- Unicorn or possibility 🤔

[Travis Turner]

I have read and seen others saying that the 2% rule when purchasing a buy and hold rental is too good to be true and is to be avoided.

I have recently seen a few places on wholesale websites that are well over 1% and some at 1.5 - 2%.

One of interest to me was a duplex listed for $64,900 and has tenants in it paying a combined $1150.

Although it doesn't show all pictures inside and out (exterior pictures aren't deterring to me) its obviously got some deferred maintenance I'm sure there should be extra CapEx to be budgeted for.

If rentometer verifys the rent is in the ballpark and its not falling down.... what am I missing?

Is that much of a spread indicative of a completely crappy or grade D property?

Seeking opinions from the property gurus here.

TYIA

[Kevin Sobilo]

There are no absolutes. So, I recommend not listening to those who say its not possible.

I'm doing a BRRRR right now where my all-in cost will be about $28k and I expect to rent it for about $850. It is a small 2 bedroom single family home. That is a 3.04% deal. It is not in a D/F Neighborhood. In fact the mayor lives 2 doors down.